Tuesday, May 17, 2011

Rick Scott Signs SB 408

Gov. Rick Scott's office has been flooded with emails and phone calls urging him to not sign SB 408. Florida Sen. Mike Fasano said homeowners would see their insurance increase if Scott signed the legislation.

“On behalf of the constituents I represent, and all homeowners in Florida, I am disappointed that this bad piece of legislation has been signed into law,” Senator Fasano states. “For an administration which vowed not to support new taxes or fees, this bill virtually guarantees a 15% premium “reinsurance” increase for Florida policy holders. This is a backdoor tax and fee increase that will hurt most homeowners with a mortgage, consumers and small business owners at a time with very high foreclosure and unemployment rates, all during a fragile economic recovery.”

When Florida Gov. Rick Scott signed SB 408 today, he said, “A healthy, stable and competitive private insurance market is critical to the success of Florida, given the hazards we face. I commend the Florida Legislature, especially Sen. Richter and Rep. Wood, for bringing this important legislation forward.”

The new law allows insurers to raise rate without the approval of the Florida legislature. Homeowners will have to pay for their own repairs before insurance companies will offer reimbursements. If you can't pay for your own repairs then insurance companies won't reimbursement. Homeowners previously were allowed five years to file a claim. The new law shortens the time to three years.

The man who pushed for this legislation is Mark Wilson, president of the Florida Chamber of Commerce.

“Despite what the critics say, signing this bill into law is the first step toward stabilizing Florida’s property insurance market. It will increase competition by attracting insurance companies that currently do not write property insurance policies in Florida,” said Mark Wilson, president Florida Chamber of Commerce.

Wilson fails to mention the 15 percent cost increase homeowners will likely face yearly. Insurance companies claim that they are losing money. Fact: State farm made $2.6 billion profit during the past decade. State Farm is involved with the offshore company DaVinci Reinsurance Ltd. Since DaVinci is not based in the Florida it can charged the highest rates. State Farm claims not to own DaVinci. Yet DaVinci has picked up its clients from State Farm and refuses to disclose who is on its board. A Google Map search of DaVinci's Burmurda address reveals it to be located at a yacht club.

The insurance industry isn't hurting in Florida. They are rigging the system to its advantage.